Powered by MOMENTUM MEDIA
subscribe to our newsletter

Regional bank prices $700m RMBS transaction

One of Australia’s regional banks has successfully priced a $700 million RMBS transaction.

Bendigo and Adelaide Bank said the 'TORRENS Series 2016-1 Trust' RMBS transaction will be upsized from $500 million to $700 million.

The TORRENS Series 2016-1 Trust, which was launched on 8 August 2016, is the bank’s latest mortgage backed securities issue under the TORRENS securitisation program.

NAB was the arranger for the transaction, and joined ANZ, CBA and Macquarie Bank as joint lead managers for the transaction.

The upsized pricing of the RMBS transaction comes after the bank recently reported positive home loan growth over the 2016 year, although record-low rates are beginning to squeeze its margins.

Advertisement
Advertisement

PROMOTED CONTENT


The bank reported underlying cash earnings of $439.3 million over the 12 months to 30 June, a 1.6 per cent increase on the prior corresponding period, and grew its mortgage book by 4 per cent to $39.8 million over the year.

In a trading update, the non-major noted that the RBA’s historic rate cut earlier this month will have an impact on the profitability of its home lending: “August price changes aim to deliver neutral margin outcome following recent cash rate reductions”.

Bendigo’s managing director, Mike Hirst, noted that lending growth accelerated in the second half, with costs well-managed in an “unprecedented low interest rate environment”.

Bendigo and Adelaide Bank only passed on 10 basis points of the RBA’s 25 basis point cut to mortgage customers.

[Related: Bank bolsters distribution but margins under attack]

Regional bank prices $700m RMBS transaction
mortgagebusiness

Latest News

The major bank will develop an integrated remediation plan on all activities related to risk governance and report to APRA each quarter as p...

The total value of new loan commitments for housing and the number of loans for the construction of new dwellings have reached record levels...

The recovery in Australian house prices continued in November, with CoreLogic stating that house values look set to surpass their pre-COVID ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: What’s being done to support home building?

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.